CM YS Jagan urges bankers to focus on farm sector

Amaravati: Chief Minister YS Jagan Mohan Reddy urged the bankers to extend support in implementing government welfare schemes and help in strengthening the rural economy. Speaking at the 213th State Level Bankers Committee (SLBC) meeting held here on Friday, the Chief Minister said it was gratifying that 7.5 per cent growth was registered in the last quarter and 99 per cent of crop loans were given. He asked the bankers to focus on doubling farmers' income, reducing investment costs, providing proper market facilities for the crops, and support farmers at the time of natural disasters.

The Chief Minister said the government has started various initiatives to reduce the investment cost to farmers like Rythu Bharosa Scheme. Half of the farmers have less than half-an-hectare of land in the state and 80 per cent of investment cost to those farmers would be covered through this scheme. Stating that the state government paid all arrears of previous government pertaining to interest free loans and encouraging farmers to take interest free loans, he said no burden was laid on farmers regarding premium of crop insurance as the government was paying it.

The Chief Minister said the bankers should support micro, small and medium enterprises (MSMEs) as they play a key role in financial sector. The banks should assist in restructuring of loans for MSMEs. The government has paid R s1,100 crore subsidy amount pending to industries from 2014 and also fixed electricity charges during Covid were waived, he said.

The Chief Minister said the state government brought in Cheyutha, Asara schemes to empower women belonging to SC, ST, BC and minorities and signed MoUs with the reputed companies like Amul, Allana, ITC, Procter & Gamble, HUL, and Reliance to empower women. He said committees were setup at village and ward level to support them.

Jagan Mohan Reddy said the Self-Help Groups have deposited Rs 7,500 crore in their accounts for 2020–21. However, the interest paid by banks is only 3 per cent, but the same banks have been charging an interest of around 11 per cent and 13 per cent. He asked the bankers to consider the fact that the government itself has been paying interest on timely paid loans.

The Chief Minister said the state government has been implementing Jagananna Thodu scheme through which Rs 10,000 was provided as interest-free loan to street vendors. The government will pay the interest of the loans taken by the vendors from banks; he said and urged the bankers to come forward to support the street vendors. The Chief Minister said the state government has been working to complete the construction of TIDCO houses at earliest and asked the bankers for their support.

Meanwhile, speaking at the conference, G Rajkiran Rai, SLBC president and MD of Union Bank of India hailed the state government's initiatives and said the activities of banks and the financial assistance provided reached the targets in time. He said the banks have given Rs 2,80,519 crore as loans in primary sector as on September this year and it's 64.60 per cent of total loans. Loans to the agricultural sector stood at Rs 1,85,075 crore and this is 42.61 percent of the total loans, he said.

Ministers Botcha Satyanarayana, Kurasala Kannababu and Mekapati Goutham Reddy, chief secretary Nilam Sawhney, NABARD CGM Sudhir Kumar Jannawar , SLBC convener V Bramhananda Reddy and RBI regional director K Nikhila were present at the meeting. UBI GM Lal Singh, UBI MD, CEO Raj Kiran Rai joined through video conference.